Investing.com-- Gold prices were steady at an all-time high in Asian trading on Friday, supported by President Donald Trump’s fresh tariff threats, while soft U.S. inflation prints further aided sentiment.

Spot Gold was largely unchanged at $2,986.62 per ounce by 01:42 ET (05:42 GMT), after reaching a fresh record high of $2,993.90 earlier in the session. Gold Futures expiring in April gained 0.2% to $2,999.17 an ounce.

Gold prices surged to a record high in the previous session, and were set to gain 2.5% this week, as escalating trade tensions and economic indicators bolstered the metal’s appeal as a safe-haven asset.

Trump’s fresh tariff threats boost gold’s safe-haven appeal

President Donald Trump threatened 200% tariffs on European alcoholic beverages, including wines and champagnes, in retaliation to the European Union’s decision to impose a 50% levy on American whiskey.

The EU’s move was a response to Trump’s recent 25% tariffs on imported steel and aluminum.

These escalating trade measures have heightened concerns about a potential U.S. recession, prompting investors to seek refuge in gold.

Concurrently, recent U.S. economic data revealed softer inflation figures. Both the consumer price index (CPI) and producer price index (PPI) indicated weaker-than-expected inflationary pressures, reinforcing expectations of potential interest rate cuts by the Federal Reserve later this year.

Lower interest rates typically reduce the opportunity cost of holding non-yielding assets like gold, thereby enhancing its attractiveness.

The Federal Reserve is scheduled to meet on March 18-19 to deliberate on interest rate policy. The current consensus anticipates that rates will remain unchanged due to persistent inflation and ongoing trade disputes.

The US Dollar Index inched 0.1% higher in Asia hours, moving away from a four-month low touched last week.

Other precious metals edged higher. Platinum Futures rose 0.4% to $1,014.65 an ounce, while Silver Futures gained 0.7% to $34.505 an ounce.

Copper prices jump on China stimulus, hover near 5-mth high

Copper prices rose on Friday, remaining near their five-month high reached earlier this week.

The People’s Bank of China (PBoC) announced plans on Thursday to introduce additional monetary tools, including potential interest rate cuts and yuan stabilization, to support economic growth.

These measures are expected to boost industrial activity and infrastructure development, driving higher copper demand and prices.

Benchmark Copper Futures on the London Metal Exchange rose 0.6% to $9,813.75 a ton, while Copper Futures expiring in May gained 0.4% to $4.9383 a pound.